Ignite your people through your Company Purpose - SAP HR s Transformation Agnes Garaba, Head of HR for EMEA South at SAP

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1 brought to you by SAP HR Ignite your people through your Company Purpose - SAP HR s Transformation Agnes Garaba, Head of HR for EMEA South at SAP October 4, 2018

2 Agenda #The Imperative of Digitalization #Building Blocks of SAP s HR Strategy 2020 #Delivering on our Promises #Measuring our Success #Hearing from our Customers 2

3 Digitalization is impacting our private and professional life anywhere, anytime. BY % of employees struggle to use new technologies available to help them do their work 1 BY % of employees who use enterprise applications access digital assistants 2 BY bn mobile users in the world 3 Digitalization is an imperative for everyone. HR is no exception. With our HR Strategy 2020 we support SAP delivering the intelligent enterprise. 1 CEB: The Future of Work, IDC FutureScape: Worldwide Big Data, Business Analytics, and Cognitive Software 2017 Predictions, Statista,

4 Becoming a leading-edge HR function through continuous evolution Decentralized Globalized Leading-edge Local & regional set-ups with global alignment Three-pillar HR Operating Model with global organizations for each pillar Cloud-enabled HR Business Model with clear customer segmentation, simple and scalable processes and strong focus on consumer experiences'

5 Agenda #The Imperative of Digitalization #Building Blocks of SAP s HR Strategy 2020 #Delivering on our Promises #Measuring our Success #Hearing from our Customers 5

6 #hr_strategy_2020 Likes 90,140 Followers 1,623

7 With our HR Strategy 2020 we support the delivery of the intelligent enterprise by translating people implications into measurable outcomes SAP s Business Strategy: Delivering the intelligent enterprise Intelligent Technologies Intelligent Enterprise Suite Digital Platform HR Purpose Statement HR Strategy 2020 HR Guiding Principles HR Focus Areas HR Portfolio Measuring HR success 7

8 Our HR Purpose Statement summarizes our HR Vision and Mission We are front-runners in the digital HR world. # We create best-in-class consumer experiences that yield sustainable business impact. Through disruptive thinking and continuous challenging of the as-is situation we nurture a culture of innovation. # We enable individuals to learn and grow, leaders and experts to engage and develop amazing talent, and support organizations to be simple and agile. # We are a high performing HR team, living How We Run guided by trust and authenticity and with empathy and respect for each other. We bring diverse experiences, thought leadership, passion and a commitment to success. # Our measures of success are grounded in business impact and tangible results, employee engagement, and SAP s external employer brand. 8

9 Our Guiding Principles Simplify Make HR interactions smooth and easy Consumer Experiences Standardize Scale while providing personalized HR services And our digital HR objectives Consumer satisfaction Deliver enjoyable HR services with human touch Simplify HR processes and make them globally consistent Utilize integrated data to drive decision making Create better consumer experiences for our employees 9

10 Our HR Focus Areas 2018 to 2020 shaping the future of work Be the #1 talent magnet Passionate leaders and experts Agile workplace of the future Brilliant learning Leading-edge digital HR Embrace an inclusive culture Consumer Experiences brought to you by SAP HR 10

11 Agenda #The Imperative of Digitalization #Building Blocks of SAP s HR Strategy 2020 #Delivering on our Promises #Measuring our Success #Hearing from our Customers 11

12 Bringing empathy to action with our evolved HR Business Model Executives and senior-level leaders First and mid-level leaders Employees Manager Services Manager Services Employee Services HRdirect HRdirect HRdirect HR Functional Specialists* HR Functional Specialists* HR Functional Specialists* HR Business Partner HR Advisor Employee Experience *e.g. Recruiting or Total Rewards Specialist Differentiation between Click, Call & personal Connect offerings leveraging SAP Technology 12

13 Today 90%+ of our HR processes are already run in the cloud SAP SuccessFactors Suite runs on SAP HANA As of September 2018 Continuous Performance Management Performance and Goals Development Planning Mentoring (Pilot) 360 Feedback Succession Management Executive & Professional Recruiting Recruiting Marketing Recruiting Management Recruiting Posting Career Site Builder Annual Compensation Review Equity Total Rewards SAP Talk & Succession Onboarding Pre-start Portal Onboarding Forms HR Cloud Learning LMS Enable Now External Workforce Management Fieldglass HR Core People Profile Employee Central Workforce Analytics HR Analytics Social Collaboration SAP Jam Digital Board Room Well-Being Work-Life SAP Analytics Cloud Appreciate Compensation Navigator SAP Leonardo Learning Analytics Bridge SAP Cloud Platform HRDirect Chatbot Learning Compass = = Talent Marketplace Ticket Analysis SAP SuccessFactors SAP Fieldglass 13

14 98,000 Employees We are LIVE on Employee Central 152 Legal entities 74 Countries ONE Team! 14

15 What does Employee Central mean for Our Employees Our HR Team Our Organization Better experiences with HR Removes admin overhead from HR Better data and insights More self-services for both employees and managers Mobile capabilities Better data and insights Higher data quality Standardized processes More agile operating model Lower cost in ownership Engaged employees Localization for compliance and reporting Ability to deliver the Intelligent Enterprise Continued innovation in the cloud 15

16 And for us, Employee Central Simplified by reducing our data fields by 33% Consumer experiences Standardized over 75 process flows Satisfied Consumers by delivering a better user experience, creating more transparency in workflows, providing more mobile services and delivering more self services Simplify HR processes and make them globally consistent Utilize integrated data to drive decision making Create better consumer experiences for our employees 16

17 Delivering Mobile first, digital HR experience Comprehensive Solutions that are flexible and intelligent Deep localization embedded within the application Secure, connected and world class platform Consumer grade, mobile first employee and manager experience Powered by live insights to help make data driven decisions Focused on the entire workforce (incl. dedicated support for contingent labor, and apprentices) Single global Core HR platform, with consistent and standardized HR processes True self-service to drive automation, improve data quality and elevate HR service delivery with efficient real time processes Connecting all HR processes to attract, develop, and retain workforce using modern technologies In use in ~200 countries around the globe. Deep localization delivered and maintained for 90+ countries, and 40+ countries for Employee Central Payroll Localized SAP Best-Practice content to accelerate implementation timelines Modernized and updated during 4 release cycles per year Extensibility options to ensure customer specific requirements can be covered Prebuilt integrations with other solutions from SAP and leading partners to accelerate and simplify Proactive approach to world-wide regulatory compliance 17

18 Business Beyond Bias Driving diversity in the workplace is no longer a nice to have, it s an economic and business imperative. Every leader needs powerful tools embedded at every decision point to detect, prevent, and eliminate bias in the most critical areas across the entire HCM landscape 18

19 So why haven t companies been able to move the needle? The challenge is incredibly complex How businesses are structured Who applies Who Leaves and When Who Applies Who is hired How people are managed Who is Promoted Human Capital Management Technology Who is Hired Who is developed Who is rewarded/recognized Who is promoted Who is Recognized and Rewarded Who is Developed How People Are Managed Who leaves and when 19

20 Our customers can embed diversity and inclusion in how they enable HCM today Leverage Employee Central to categorize jobs and job families differently, impacting how they are structured? Leverage Recruiting Marketing to create career sites that communicate inclusive messages and culture, impacting who applies? Leverage Interview Central to form panels of interviewers, impacting who they hire? Utilize GM and PM to drive clarity in what people are expected to achieve in their roles, impacting how they manage? Leverage Jam to create learning communities and social relationships, impacting who they develop? Leverage calibration tools to drive discussion around merit pay, impacting who they reward? Utilize talent search capabilities in Succession, impacting who they promote? 20

21 Bringing Well-being at Work to life

22 Well-Being at Work is no longer a nice to have Well-being s share of the HCM market: $43B 1 24% of organizations have increased their wellbeing benefits offerings in the past 12 months 4 8 in 10 companies see well-being as a critical component of their business strategy 2 No control over career Poor relationships with managers Unreasonable workloads Gender gap Commute Indirect costs of stress: 83% of workers say they re stressed about their jobs 3 1 Global Wellness Institute: 2 State of the Industry 2017, Virgin Pulse

23 SAP Leading by example Workforce Wellbeing Employee Engagement Business Results Programs launched since 2012 SAP Talk Mindfulness at Work Business Beyond Bias SAP Business Health Culture Index Inclusive family benefits (e.g. FlexAppeal) Work Metrics Achieved since % increase in employee productivity 85% engaged employees, 7% increase 28% increase in trust Achieved 25% female leadership milestone Won over 75 awards for workplace excellence Performance since 2012 Stock: $112/share, 48% Revenue: 22 Billion, 30% 87,000 employees; 30% 10x increase in Cloud revenue Nothing is more valuable to a business than having a healthy, happy and inspired workforce. - Jen Morgan, Executive Board Member, Global Customer Operations 23

24 Well-Being at Work: The Approach Existing Solutions New Solutions Partner Solutions Embed well-being into existing solutions, starting with SAP SuccessFactors and the human capital management suite Offer well-being solutions that provide evidencebased interventions aligned to an individual s well-being needs Curate a partner ecosystem of well-being providers that can deliver unique solutions to support a customer s well-being strategy 24

25 Embedding well-being into existing SuccessFactors solutions Include well-being leadership as a competency for all leaders and consider it during succession planning. Include well-being as a cultural value on your career site, offer a well-being realistic job preview, and embed well-being into the candidate experience. Offer rewards tailored to employees well-being needs to improve engagement. Include a well-being assessment and module during onboarding that offers support for the common stressors associated with starting a new job. Create a well-being development goal for all employees, aligned to the company values and tied directly to the work context. Offer learning modules such as mindfulness, resilience, and stress management to help with employees well-being challenges and delivered at important employee milestones. 25

26 Agenda #The Imperative of Digitalization #Building Blocks of SAP s HR Strategy 2020 #Delivering on our Promises #Measuring our Success #Hearing from our Customers 26

27 We continue to boost HR Customer Satisfaction* *Source: Annual HR Customer Feedback Survey; Scale:

28 The market agrees - in 2017 alone, we received 281 employer awards* *Several awards have been received in multiple locations 28

29 Agenda #The Imperative of Digitalization #Building Blocks of SAP s HR Strategy 2020 #Delivering on our Promises #Measuring our Success #Hearing from our Customers 29

30 Thank you. Contact information: Agnes Garaba Head of HR, EMEA South at